Russian President Vladimir Putin said Wednesday he is ready to talk about a resolution to the escalating crisis in Ukraine, telling the Organization for Security and Cooperation: “Let’s try to analyze the situation and seek ways out of the crisis.” Putin also pulled his troops back from the Ukrainian border, according to news reports.

Violent conflict between Ukraine and pro-Russian separatists has battered Russian securities in recent months, so Wednesday’s development was taken as a positive sign by the markets. A 10-year Russian bond maturing in 2023 traded at a yield of 5.15% on Wednesday, down nearly 40 basis points from Tuesday’s yield of 5.53%, according to Tradeweb. The yield was at its lowest since early last month. Yields fall as prices rise.

However, German bonds, or bunds, have “been a better gauge of the Ukraine conflict,” according to Tom Tucci, managing director and head of Treasury trading at CIBC World Markets Corp. The yield on a 10-year German bund, which tends to rise as investors lessen demand for safe assets, was up 1.5 basis points on the day at 1.474%.

A 10-year Ukrainian bond maturing in 2023 traded at 10.16% on Wednesday, down from 10.72% on Tuesday.

Story Conversation

About The Tell

The Tell is MarketWatch’s fast and engaging look at trends and themes in the day’s markets. Drawing on our reporters, analysts and commentators around the world, as well as selecting the best of the rest online, The Tell is all about the pulse of the markets through news, insight and strategic information to help you make the best investing decisions. Got a tip? Tell us at TheTell@MarketWatch.com